Legal fees for individuals, for the most part, are not deductible beginning in 2018-2025 as part of the Tax Cuts and jobs Act (TCJA). They were an itemized deduction in earlier years and may be again, but not now. The law does not allow you to offset your income by these legal fees at this time.
Wrongful termination doesn't necessarily mean 'unlawful discrimination' which would need to be very clearly stated in your claim. Check the details and ask your lawyer.
- Fees related to unlawful discrimination claims are deductible on Form 1040.
If the proceeds were as a result of an employer discrimination lawsuit, you can deduct the legal expenses up to the amount of the proceeds as an adjustment to income.
Go to the Income and Expenses section of TurboTax
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description and the amount of your legal fees as a negative number (-150 as example)
@thrt19
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
